97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5047

 

Introduced 2/7/2012, by Rep. Monique D. Davis

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 136/10
215 ILCS 136/15
215 ILCS 136/30

    Amends the Portable Electronics Insurance Act. Provides that a business entity that is a licensed insurance producer or insurer (supervising entity) shall maintain a registry of vendor locations that are authorized to sell or solicit portable electronics insurance coverage in the State and that, upon request by the Director of Insurance and with 10 days notice to the supervising entity, the registry shall be open to inspection and examination by the Director during the regular business hours of the supervising entity. Makes changes to the provision requiring brochures or other written materials be made available to prospective customers at every location where portable electronics insurance is offered. Deletes language concerning notice with regard to the termination of portable electronics insurance and provides instead that whenever notice or correspondence with respect to a policy of portable electronics insurance is required pursuant to the provision concerning termination of portable electronics insurance or is otherwise required by law, it shall be in writing and sent within the notice period, if any, specified within the statute or regulation. Sets forth provisions concerning notice requirements.


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A BILL FOR

 

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1    AN ACT concerning insurance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Portable Electronics Insurance Act is
5amended by changing Sections 10, 15, and 30 as follows:
 
6    (215 ILCS 136/10)
7    Sec. 10. Licensure of vendors.
8    (a) In order to sell or offer coverage under a policy of
9portable electronics insurance, a vendor is required to hold a
10limited-lines license.
11    (b) A limited-lines license issued under this Act shall
12authorize any employee or authorized representative of the
13vendor to sell or offer coverage under a policy of portable
14electronics insurance to a customer at each location at which
15the vendor engages in portable electronics transactions.
16    (c) The supervising entity shall maintain a registry of
17vendor locations that are authorized to sell or solicit
18portable electronics insurance coverage in this State. Upon
19request by the Director and with 10 days notice to the
20supervising entity, the registry shall be open to inspection
21and examination by the Director during the regular business
22hours of the supervising entity. In connection with a vendor's
23application for licensure and quarterly thereafter, the vendor

 

 

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1shall provide a list to the Director of all locations in this
2State at which it offers coverage.
3    (d) Notwithstanding any other provision of law, a license
4issued pursuant to this Act shall authorize the licensee and
5its employees or authorized representatives to engage only in
6those activities that are permitted in this Act.
7(Source: P.A. 97-366, eff. 1-1-12.)
 
8    (215 ILCS 136/15)
9    Sec. 15. Requirements for sale of portable electronics
10insurance.
11    (a) At every location where portable electronics insurance
12is offered to customers, brochures or other written materials
13must be made available to a prospective customer. The brochures
14or other written materials shall do all of the following:
15        (1) disclose that portable electronics insurance may
16    provide a duplication of coverage already provided by a
17    customer's homeowner's insurance policy, renter's
18    insurance policy, or other source of coverage;
19        (2) state that the enrollment by the customer in a
20    portable electronics insurance program is not required in
21    order to purchase or lease portable electronics or
22    services;
23        (3) summarize the material terms of the insurance
24    coverage, including:
25            (A) the identity of the insurer;

 

 

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1            (B) the identity of the supervising entity;
2            (C) the amount of any applicable deductible and how
3        it is to be paid;
4            (D) benefits of the coverage; and
5            (E) key terms and conditions of coverage, such as
6        whether portable electronics may be repaired or
7        replaced with similar make and model reconditioned or
8        nonoriginal manufacturer parts or equipment;
9        (4) summarize the process for filing a claim, including
10    a description of how to return portable electronics and the
11    maximum fee applicable in the event the enrolled customer
12    fails to comply with any equipment return requirements; and
13        (5) state that the enrolled customer may cancel
14    enrollment for coverage under a portable electronics
15    insurance policy at any time and the person paying the
16    premium shall receive a refund or credit of any applicable
17    unearned premium within 15 days after receipt of the refund
18    by the vendor.
19    (a-5) Any refund or credit due to an enrolled customer
20shall be issued within 15 days after receipt of the refund by
21the vendor.
22    (b) Portable electronics insurance may be offered on a
23month-to-month or other periodic basis as a group or master
24commercial inland marine policy issued to a vendor of portable
25electronics for its enrolled customers.
26    (c) Eligibility and underwriting standards for customers

 

 

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1electing to enroll in coverage shall be established for each
2portable electronics insurance program.
3(Source: P.A. 97-366, eff. 1-1-12.)
 
4    (215 ILCS 136/30)
5    Sec. 30. Termination of portable electronics insurance.
6Notwithstanding any other provision of law:
7        (1) An insurer may terminate or otherwise change the
8    terms and conditions of a policy of portable electronics
9    insurance only upon providing the policyholder and
10    enrolled customers with at least 60 days notice.
11        (2) If the insurer changes the terms and conditions,
12    then the insurer shall provide the vendor policyholder with
13    a revised policy or endorsement and each enrolled customer
14    with a revised certificate, endorsement, updated brochure,
15    or other evidence indicating that a change in the terms and
16    conditions has occurred and a summary of the material
17    changes.
18        (3) Notwithstanding item (2) of this Section, an
19    insurer may terminate an enrolled customer's enrollment
20    under a portable electronics insurance policy upon 15 days
21    notice for discovery of fraud or material
22    misrepresentation in obtaining coverage or in the
23    presentation of a claim thereunder.
24        (4) Notwithstanding item (2) of this Section, an
25    insurer may immediately terminate an enrolled customer's

 

 

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1    enrollment under a portable electronics insurance policy:
2            (A) for nonpayment of premium;
3            (B) if the enrolled customer ceases to have an
4        active service with the vendor of portable
5        electronics; or
6            (C) if an enrolled customer exhausts the aggregate
7        limit of liability, if any, under the terms of the
8        portable electronics insurance policy and the insurer
9        sends notice of termination to the enrolled customer
10        within 30 calendar days after exhaustion of the limit;
11        however, if notice is not timely sent, enrollment shall
12        continue, notwithstanding the aggregate limit of
13        liability, until the insurer sends notice of
14        termination to the enrolled customer.
15        (5) When a portable electronics insurance policy is
16    terminated by a policyholder, the policyholder shall mail
17    or deliver written notice to each enrolled customer
18    advising the enrolled customer of the termination of the
19    policy and the effective date of termination. The written
20    notice shall be mailed or delivered to the enrolled
21    customer at least 30 days prior to the termination.
22        (6) Whenever notice or correspondence with respect to a
23    policy of portable electronics insurance is required
24    pursuant to this Section or is otherwise required by law,
25    it shall be in writing and sent within the notice period,
26    if any, specified within the statute or regulation

 

 

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1    requiring the notice or correspondence. Notwithstanding
2    any other provision of law, notices and correspondence may
3    be sent either by mail or by electronic means as set forth
4    in this paragraph (6). If the notice or correspondence is
5    mailed, it shall be sent to the vendor of portable
6    electronics at the vendor's mailing address specified for
7    such purpose and to its affected enrolled customers' last
8    known mailing addresses on file with the insurer. The
9    insurer or vendor of portable electronics, as the case may
10    be, shall maintain proof of mailing in a form authorized or
11    accepted by the United States Postal Service or other
12    commercial mail delivery service. If the notice or
13    correspondence is sent by electronic means, it shall be
14    sent to the vendor of portable electronics at the vendor's
15    electronic mail address specified for such purpose and to
16    its affected enrolled customer's last known electronic
17    mail address as provided by each enrolled customer to the
18    insurer or vendor of portable electronics, as the case may
19    be. For purposes of this paragraph (6), an enrolled
20    customer's provision of an electronic mail address to the
21    insurer or vendor of portable electronics, as the case may
22    be, shall be deemed consent to receive notices and
23    correspondence by electronic means. The insurer or vendor
24    of portable electronics, as the case may be, shall maintain
25    proof that the notice or correspondence was sent. Whenever
26    notice is required pursuant to this Section, it shall be in

 

 

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1    writing and may be mailed or delivered to the vendor of
2    portable electronics at the vendor's mailing address and to
3    its affected enrolled customers' last known mailing
4    addresses on file with the insurer. If notice is mailed,
5    then the insurer or vendor of portable electronics, as the
6    case may be, shall maintain proof of mailing in a form
7    authorized or accepted by the United States Postal Service
8    or other commercial mail delivery service. Alternatively,
9    an insurer or vendor policyholder may comply with any
10    notice required by this Section by providing electronic
11    notice to a vendor or its affected enrolled customers, as
12    the case may be, by electronic means. If notice is
13    accomplished through electronic means, then the insurer or
14    vendor of portable electronics shall maintain proof that
15    the notice was sent.
16        (7) Notice or correspondence required by this Section
17    or otherwise required by law may be sent on behalf of an
18    insurer or vendor, as the case may be, by the supervising
19    entity appointed by the insurer.
20(Source: P.A. 97-366, eff. 1-1-12.)